According to the UK's Financial Conduct Authority (FCA), "financial influencers" need to obtain approval from a designated representative of the FCA before promoting memes about financial products/services in ads.
The UK's Financial Conduct Authority has announced that it will issue guidance on meme marketing of financial products to address issues faced by financial services firms and social media influencers.
The FCA’s latest report follows its announcement last month that it would take action against firms engaged in the promotion of illegal finance.
FCA releases guidance for meme influencers
The UK financial regulator has issued guidance for financial services firms and social media influencers who create memes related to cryptocurrencies or other investments. The guidelines stress that any marketing should be transparent and not misleading.
According to the FCA, these "financial influencers" must obtain approval from an appointed representative of the FCA before advertising or publishing memes about financial products or services. Regulators have warned that promoting financial products without such approval could constitute a criminal offence.
The FCA emphasizes that consumers should be wary of misleading advertising and online scams. It advises influencers to ensure compliance and consider the possible impact on their reputation if they are found to be illegally promoting products.
According to Lucy Castledine, director of consumer investment at the FCA, the regulator will take action against those who promote financial products illegally.
The FCA further highlighted that meme-based promotion is particularly popular in the crypto sector, which includes a dedicated area for this type of asset. Platforms such as Telegram and Reddit have been identified as popular platforms for cryptocurrency-related meme marketing.
FCA warning echoes earlier proposed guidance
The Financial Conduct Authority’s (FCA) recent warning against crypto memes is not the first. In July 2023, the regulator proposed guidelines for non-compliant crypto memes, many of which were consistent with recent warnings.
In 2023, the FCA expressed its intention to update its rules on the promotion of online financial products to ensure better compliance on social media platforms. Notably, the FCA did not mention cryptocurrencies in its guidance published in 2015. As part of this effort, the FCA began consulting on whether to include crypto memes within the scope of official UK rules.
The agency stresses that any form of communication may be classified as financial promotion and is subject to Section 21 of the Financial Promotion Act. Lucy Castledine, the FCA's director of consumer investment, said in the announcement that they aimed to clarify the expectations of firms when marketing financial products online to ensure compliance with its regulations.
Meanwhile, the FCA has stepped up its scrutiny of financial promotions, removing more than 10,000 misleading ads last year, compared to around 8,500 in 2022. The regulator also issued 450 alerts on crypto promotions in the three months from October to December 2023. #FCA #Meme代币
